A REPORT ON ORGANISATION STUDY

AT
THE ALUMINIUM INDUSTRIES LTD (ALIND)
MANNAR

Submitted to mahatma Gandhi University in partial fulfilment

of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By
ATHIRA SUSEELAN
Reg. No : 71160

Under the Guidance Of

Mr.P.B. Vijayan Prof. Shibu Itty Mathew

(Company guide) (Faculty guide)

DEPARTMENT OF MANAGEMENT STUDIES

MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES
THIRUVALLA
2016
 DECLARATION

I hereby declared that this report titled organisation study at ALUMINIUM

INDUSTRIES SWITCHGEAR DIVISION, MANNAR has been prepared by me
during the academic year 2016-17, under the guidance of Prof. Shibu Itty,
Department of Management Studies, MACFAST, Thiruvalla.

I also hereby declare that this project report has not been submitted to any other
university or institute for the award of any degree and diploma.

Place: Thiruvalla ATHIRA SUSEELAN

Date : 30-4-2016
 ACKNOWLEDGEMENT

It is great pleasure to express my heartily thanks, to those who helped to make this
study successful. First of all I am grateful to God Almighty for helping me to
complete the project successfully.

I am thankful to my project guide Prof. Shibu Itty Mathew, who provided all
support and let me through the whole project at ALUMINIUM INDUSTRIES
LTD.

I take this opportunity to express my respectful, sincere thanks and gratitude to

Fr. Pradeep Vazhatharmalayil, principal, MAR ATHANASIOUS COLLEGE
FOR ADVANCED STUDIES, Thiruvalla, Kerala who provided the wonderful
atmosphere, which enabled to do this project work.

I solemnly express our earnest and sincere thanks to Prof. Ligo Koshy, Head of
the department, MBA, too.

I proudly utilize the privilege to express my thanks for all the help and support
given by the company authorities and all the individuals in ALUMINIUM
INDUSTRIES LTD. Who helped me in preparing the project to its final
completion.
 LIST OF FIGURES

Figure
Description Page no.
no
1 Organisational structure 19

2 Structure of personnel Department 35

3 Plant layout 36

4 Structure of production Department 41

5 Machine shop chart 42

6 Structure of marketing sales department 48

7 Structure of purchase and sales 51

department

8 Working Capital Cycle 56

9 Finance Department Chart 57

CONTENTS

Page no
CHAPTER 1. INTRODUCTION 1-4

1.1 Scope of the study 2

1.2 Significance of the study 2
1.3 Objectives of the study 2
1.4 Methodology 3
1.5 Reference period 3
1.6 Limitation of the study 4

CHAPTER 2
PROFILE OF SWITCHGEAR INDUSTRY IN INDIA 5-12
2.1 Switchgear Industry 6

2.2 Market opportunity for Switchgear Industry 7

2.3 Global Switchgear Market 9

2.4 Switchgear market in India 10

2.5 Future impact of economic crisis 11

CHAPTER 3. ALIND-AN OVERVIEW 13-19

3.1 The aluminium industries Limited 14

3.2 ALIND the first and foremost 15

3.3 Divisions of ALIND 16

3.4 organisational structure 19

CHAPTER 4.
PRODUCT PROFILE OF ALIND SWITCHGEAR LTD 20-24
4.1 Circuit breakers 21

4.2 static relay 21

4.3 switchgear 23
CHAPTER 5.

FUNCTIONAL DEPARTMENT OF ALIND SWITCHGEAE LTD 25-57

5.1 Personal department 26

5.2 Production department 34

5.3 Marketing and sales department 43

5.4 Purchase and construction department 49

5.5 Finance and accounting department 52

CHAPTER 6

PERFORMANCE ANALYSIS OF ALIND SWITCHGEAR LTD 58-62

6.1 Swot analysis 59

6.2 porters five force analysis 60

CHAPTER 7.

FINDINGS, CONCLUSION AND SUGGESTION 63-66

7.1 Findings 64

7.2 Conclusion 65

7.3 Suggestion 66

Bibliography 67
 CHAPTER 1

INTRODUCTION

1
1.1 INTRODUCTION
Organizations plays major role all over the world, different organization
meet people needs and provide them with product and services or both. Due to
globalisation the world has become global village. This has very much helped people
to get their needs. Different firm play different roles and it has its own importance.
The company which have choose for the organizational study in ALIND. It is a well
developed company partially owned by the state government of Kerala.

ALIND produces cables and conductor, steel wires, wires working

machinery, high voltage switchgears and static relays for different users. They
produce switchgear and transformers which are mainly consumed by the Kerala
state electricity board and Indian railway. The products are utilized for the welfare
of the public. These products are not directly consumed by the public.

The company has different departments to control the overall functioning of

the company presently the company is owned and managed by the Bombay based
Somani group. A professional board of directors with Mr.Rajendra somani as
chairman manages the company.

All the departments in the organization are studied. The production and
the sales function of the company are carefully analyzed. A careful and detailed study
is conducted with the given period of time.

1.2 SCOPE OF THE STUDY

The organization study is conducted to have practical knowledge
about the various functions and activities of an organization. The study helped to
know the activities of various departments in the organization.

The importance of each activity in an organization is analyzed.

2
1.3 SIGNIFICANCE OF THE STUDY
Significance of the study is that study was conducted to learn the
organization structure and different department of organization. In short the

3
 study was conducted to get familiarize with the dynamics of the organization.
As part of the academic curriculum, the project work has its own significances
for the management students to understand the theoretical aspects of the
management practically. This type of study will be helpful for prospective
managers in involving new ideas and enabling them to take appropriate
managerial decision.

1.4 OBJECTIVES OF THE STUDY

To study the organizational structure of the ALIND.
To study the function of various depart ments and interdependence of these
departments.
To know the various products of the ALIND.

1.5 METHODOLOGY
Both primary data and secondary data were collected. However the
main data are collected from primary data

PRIMARY DATA
Primary data was collected by conducting discussions with the company
officials and others staff in the office as well at the factory. This is further followed
up with the observation recording of necessa ry information and their analysis and
interpretation.

SECONDARY DATA
Secondary data was collected from published sources of the company
like annual reports, magazines, website and other official records.

1.6 REFERENCE PERIOD

Since the study is done by usi ng both primary and the reference
period of primary data of the organi zation study was 30 days. Primary data
st st
study starts at 21 march 2016 to 21 April 2016.

4
1.7 LIMITATION OF THE STUDY
There was sufficient support from the staff but the company tight work schedule
prevented them from giving additional information.

The study was mainly based n secondary data might have reflected in analysis.

The reluctance on the part of managers in disclosing confidential information was

also a limitation

5
 CHAPTER - 2
SWITCHGEAR INDUSTRY AN
OVERVIEW

6
2.1 SWITCHGEAR INDUSTRY
Continues power supply is critical for any industry. As India is becoming an important
global supplier of goods and services, uninterrupted power supply gains immense
significance likewise the availability of good quality electric equipments imperative.

At present, India has an installed generating capacity of over

146902 MW [as on Dec 08] and a capacity addition of about 80000 MW is required
to meet the objective of Power For All this necessities enhancement of the
transmission and distribution infrastructure to evaluate additional power across the
country.

The Indian government has initiated the accelerated power development and
reform programme [APDRP] in order to minimize aggregate technical and
commercial [AT & C] losses at the distribution level, with the objective of improving
the financial health of state electricity board, this provides a huge opportunity for the
power sector with low voltage [LV] and medium voltage [MV] switchgear being no
exception.

Indias switchgear industry is fully developed and mature. Having clocked

sustained growth in the past and continuous demand from power, industrial,
infrastructure, commercial and residential sector is expected to stimulate growth for
LV and MV switchgear. Switchgear is expected to be in great demand owning
upgradation of the T& D infrastructure and the promising continued growth
momentum across end- user verticals. With the demand for both LV and MV
switchgear expected to rise, the future seems to hold much potential for suppliers.
Switchgear industry is one of the major industries in India. The switchgear industries
offer auxiliary equipment like lightning arresters, isolators, Instrument transformers
etc for industrial customers. The industry offers industrial type switches, switch board
for distribution and motor starter, also complete engineering turkey contracts for
electrification of industrial complexes undertaken by the industry.

7
 Safety of people and installation of power system requires a very
high reliability, therefore circuit breakers a integral part of power system. The purpose
of circuit breakers is to allow the uninterrupted flow of current in a normally operating
power system. And rapidly interrupt the current when a fault occurs. Due to high
mechanical and electrical endurance vacuum circuit breakers and SF6 circuit breakers
have triggered their success in the circuit breaker market. Towards the late 60s SF6
started in the early 70s. In India the vacuum technology was incorporated around
1983 in 11kv and 33kv voltage class and SF6 introduction, around 1983-86. Vacuum
technology was implemented in India by BHEL, S&S power and SF6technology in
medium voltage by Voltas Mumbai.

Prior to 1983, in India we were using bulk oil circuit breakers and air-blast circuit
breakers [ABCBs]. In spite of tangible clear cut benefits of SF6 and vacuum
technologies like being maintenance free and having no fire hazards, majority of our
state electricity board showed high reluctance as these products where thrice as
expensive compared to ACBs and MOCBs.

2.2 Market Opportunity for Switchgear Industry

Utilities segment

Indias power generation capacity of 2300 MW in 1950 expanded to 146,902 MW in

December, 2008. With the electricity five year plan (2007- 2012) THE

CAPACITY IS EXPECTED TO INCREASE BY AROUND 78,000 MW. The

government is focusing on increasing the penetration of power supply in villages.
Scheme like APDRP and RGGVY are providing an excellent opportunity for the LV
and MW switchgear market with about 20.0 to 30.0 percent villages yet to be
electrified.

Industrial segment

8
 Indias industrial sector accounts for nearly 30.0 percent of GDP, with
most of the industrial divisions reporting growth in output in the first half of 2008.
An increase in process automation levels is expected to support push- buttons,
contactors and switching relays, as well as the protection relays market, which finds
application extensively for motor control. Investment in new infrastructure setup is
set to increase the market for ISG, RMUs, MCCBs, ACBs, C &Rs.

Commercial and infrastructure

Infrastructure sector is one of the most important thrust sectors in the

eleventh five year plan of the government with an estimated investment of 475 billion
over five year; an average of 7.6 percent of GDP. Massive investment from the private
and public sector are expected to drive the growth and social infrastructure, such as
new hospitals, commercial complexes, railways, roadways and schools.

Infrastructure development is expected to benefit the RMUs, ACBs, and MCCBS

market foe switching, control and general protection application.

Residential sector

In the residential construction sector, the market slowed down in 2008

with year-on- year unit growth decreasing to 10.8 percent as compared to 24.0 percent
in 2007. The slowdown was primarily because of increased interest rates which made
home loans more costly. Nevertheless, the market is expected to continue growing
above 10.0 percent during the forecast period, especially with the recent reforms to curb
inflation. Continued growth of the residential sector is likely to drive the MCBs, ELCBs
and MCCBs market.

Power Plant Modernization and Refurbishment

As in other part of the world, numerous power plant in India are nearing the end
of their service plan, thus requiring overhauling and modernization. This includes
replacement of existing transformer, which are on average over 30 years old and the

9
 replacement of LV, MV, and HV switchgear. Power plant modernization and
refurbishment is expected to support growth of the switchgear market.

Alternative Energy Sources

The Indian government continues to research and invest in renewable sources such
as wind, solar and hydro electric power. The renewable energy market is likely to
grow at 22.0 25.0 percent for the next 4 -5 years. The increase in investment in
alternative in energy sources is expected to support market growth, as LV and MV
switchgear products are required for general protection as well as switching. The
MCCB and MCB market are expected to benefit considerably from alternative energy
expansion.

2.3 GLOBAL SWITCHGEAR MARKET

Switchgear is a combination of device designed to control, regulate, meter and
protection electric generation, Trans mission and distribution equipment, and
electric power control system. The global market for switchgear is anticipated to do
well in the coming times as demand is likely to be driven by medium and high
voltage types of switchgears. Revenues in the switchgear market are closely tied
with the demand for transformer, therefore any increase in demand for transformer
will lead to a rise in demand for switchgear and vice versa.

The global gas insulated switchgear market is expected to show impressive growth
in the future. The market for switchgear will continue to evolve globally, led mainly
by escalating demand for renewable sources of energy, growth i construction and
industrial sectors especially transmission distribution systems. Although
environmental regulation offer scope for expansion, volatile oil prices, rising raw
material prices and restricted flow of investment in the electricity sector act as
stumbling blocks.

Rising investment in alternative source of energy is expected to contribute to the

growth of medium voltage and low voltage switchgears used for switching and

10
 general protection. Moreover, this application area will also trigger demand for
miniature circuit breakers (MCB) and moulded case circuit breaker (MCCB).

Against a break drop of tough economic climate, corporate success will critically hinge
upon the ability to research and develop new innovative products at competitive prices
and validate new application for existing products to distinguish themselves from that
of competitors. Several technologies development such as arc- resistant technology and
magnetic actuation have been undertaken by various original equipment manufacturers
(0Ems) focusing on enhancing the reliability and efficiency of switchgear equipment.
Growth in switchgear will also be sustained by government directive older redundant

system to achieve operational safety, and security in industrial establishment.

2.4 SWITCHGEAR MARKET IN INDIA

The global market for switchgear is expected to post good growth rate in the
coming years as demand soars exponentially worldwide. With the Indian government
focused on bringing about improvement in the state electricity board, the Indian market
for switchgear is likely to post good growth rate by 2020. The market for switchgears
is well established in India, with a lot of potential for further growth coming from
utilities, as well as commercial and industrial segments.

With India facing an energy crisis, the government has plans to reform the power
sector. With reforms on the way, the future of the Indian switchgear industry looks
bright and investment in the market is likely to flow in.

The Indian electrical equipment industry comprising of multinational, large medium

& small players is fully geared up producing, supplying and exporting a wide variety
of electrical equipment including switchgear and control gear items needed by the
expanding industrial and power sector on which we focus in the article. This industry
sector in fact manufactures the entire voltage range from 240 V to 800KV. 1200KV
equipment is under indigenous development for 1200KV Test station at Bina, MP.
The current technology level in India is contemporary. It is estimated that the present

11
size of the Indian switchgear industry, is around Rs. 12000 cores. The industry grew
by about 21% in volume terms in 2010 2011. Overall exports decreased by 8 %,
whereas imports increased mainly for MV/HV by more than 25%. Weight age of
switchgear industry based on IEEMA electrical industry index is 15.2%. The
population of IEEMA members from switchgear industry is around 140 members.
Currently, the MV & HV segments are suffering from overcapacity due to lack of
orders. Inadequate demand could be due to insufficient planning by the users and
delay in finalizing tenders. Unfortunately bunching of orders also creates supply-
delivery problems, also L1 (lowest quoted price) procurement system followed by all
utilities i.e. procuring products at lowest price creates a hurdle for bringing good
quality material in the system. Further insistence on repeated type testing f products
in spite of inadequate type testing laboratories poses additional delays and harm to

the equipment.

2.5 FUTURE IMPACT OF ECONOMIC CRISIS

The future of the LV and MV switchgear market is highly dependent on the
rectification of the current energy crisis, power sector reforms being implemented in
India and reforms to arrest rising inflation. Growth of the Indian LV and MV
switchgear market will be supported by increased investment in the expansion of T &
D network coupled with infrastructure and industrial development.

If the energy crisis is solved during the forecast period, investor confidence can be
regained, allowing for increased investment in the utilities, industrial, infrastructure
and commercial segments. The market for ISGs, MCCBs and C&Rs are expected to
grow at a faster rate compared to the overall LV and MV market growth over the
forecast period 2009 to 2015.

High level of competition in the LV switchgear market is expected, as major markets

participants focus on maintain their current market shares. This will be made difficult
with the emergence low-cost domestic players who market products of similar quality.

12
 Factors that are expected to restrain growth include the shortage of power supply
being experienced in India, as well as the increase in interest rates caused by inflation,
which can restrain investment in major projects during the forecast period.

The end users are demanding tailor-made equipment, which best suits their project
needs. The retrofitting projects need highly customized switchgear for the current
demand. Recently, the demand for turnkey solutions in their portfolio, as

13
the end- users demand for total solution, the Tier II and Tier II suppliers can
explore synergies with solution providers.

With rising level of market maturity, suppliers are likely to benefit from
operating in niche markets, such as the intelligent overload relays, which can
experience higher than average growth during the forecast period. The major
technological factors in the market are safety, maximization of efficiency and
reliability. Quality of the sw itchgear gives a market edge for most of the suppliers.
Dedicated commitment to the overall quality of the switchgear has been determined
as a mandatory strategy for the success.

Overall, the Indian LV and MV sw itchgear market is well established and

organized suppliers are expected to generate significance revenues. Despite the
predicated fluctuations in the annual growth rate during the forecast period, the
industry is expected to grow in terms of revenues.

14
 CHAPTER 3
A PROFILE OF - ALIND

15
 ALIND, a premier engineering industry in India engaged in multi faced
activities was established in 1946. The company today have 6 manufacturing
divisions, 2 contracting divisions and an export division. The main manufacturing
plants are located in the states of Kerala Andhra Pradesh and Orissa. ALIND s history
is inextricable woven with the history of India. Way back in 1947, India has tried with
destiny and become an independent sovereign republic. ALIND was established in
1946 and commenced the production in the year 1948. While the entire nation saluted
the Indian tri colour flag and ceremonial guns of the British emperor ramparts of the
red fort in Delhi, in a tiny hamlet named kundara, the first reel of aluminium conductors
rolled down the aisle of Alind factory. On the glorious day of independence, India made
history and ALIND too.

More than 4 decade ago ALIND pioneered the manufacture of aluminium

conductors in India and for the very first in India that aluminium, a versatile and
abundant metal could successfully replace copper, the conventional power carrier. In
fact this technology innovation revolutionised the bulk power transmission and
distribution of power in India and hence ALIND calls them The Power Movers. In
1955 ALIND core wire and high tensile wires from ALIND thereby marketing a proud
niche for Indian exporters in international market.

3.1 THE ALUMINIUM INDUSTRIES LIMITED

The aluminium industries limited came in to existence, on 2nd January 1946,
promoted by then Seshasayee group with its conductor division set up in Kundara,
kerala under technical collaboration from the world renowned ALCAN, Canada, The
aluminium development laboratories U.K &ALCAN S.A, Zurich, Switzerland. Since
then, ALIND has produced more than a million kilometres of AAC, ACSR, AND
AAAC conductors building the lifeline of power in India and aboard, and hence
ALIND could rightly call itself THE POWER MOVERS.

Presently the company is owned and managed by the Bombay based somani group.
A professional Board of Directors with MR. Rjendran Somani AS CHAIRMAN
manages the company.

16
 As the year rolled by the, ALIND diversified its activities by uniting various streams
of power transmission technology and emerged as multi divisional composite
corporate entity. ALIND has abreast the latest technology by collaborating with world
leaders in their chosen fields.

3.2 ALIND- THE FIRST AND TH FOREMOST

To propagate the use and supply of aluminium conductors.
To bring the revolutionary property process of continuous casting and rolling of
aluminium wire.

To manufacture ACSR core wire and high tensile steel wire.

To export conductors to be awarded the ISI mark.
To manufacture fibre glass reinforced resin bonded components.
To propagate SF6 Gas CIRCUIT breaker technology and obtain licence for
manufacture.

To manufacture and supply vacuum interrupters and vacuum circuit breakers for
the traction installation of Indian Railway and the only Indian supplier approved
by Rdso for vacuum interrupters and vacuum circuit breakers so far.

Incorporated in 1946, Aluminium industries (ALL) was formed to manufacture

plain steel covered aluminium conductors for electrical overhead transmission
purpose, accessories and fitting, aluminium transmission purpose, accessories and
fitting, aluminium transmission lines, general utility aluminium wire and aluminium
alloy casting. The companys products are sold under ALIND brand name. In 1985-
1986, AIL entered the electrical contracting field. In 1976- 1977, a technical
collaboration agreement was signed with Delhi Alsthom, france, to manufacture
132KV and 220KV circuit breakers and current transformers.

The static relays project was commissioned in Jan 82. In the switchgear
Division Mannar the company had taken up the implementation of the project for the
manufacture of switchgear in collaboration with firth brown castings, UK. In 1984

17
85, the company obtained a licence for the manufacture of vacuum circuit breakers in
collaboration with Meidensha of Japan. During 1987-88, the company came under
the provision of sick industrial companies Act, 1985 and reference was made to
BIFER. BIFR finalised rehabilitation scheme submitted by IRBI in October. Which
was being implemented from I Nov. 89. As per the approved scheme, the somani
group and banks inducted Rs.300 lakhs and Rs.1050 Lakhs respectively in to the
company. A company under the name Alind (Nigeria) was incorporated in Nigeria
for the manufacture of conductor and cables. Today ALIND is a multi divisional

composite, corporate entity with the following super speciality divisions.

3.2.1 DIVISIONS OF ALIND

Conductor and Cable Division: Kundara, Hyderabad

Pioneering with revolutionary properzel process in the early 50s ALIND was
once the manufactures of conductors and cables in India. It makes widest range
from extremely fine low tension to extra high tension conductors for 400 kV lines.
ALIND has participated in many major projects in India and abroad.

Steel Wire Division, Kundara

ALIND manufactured a wide range of steel wire products to Indian and

international standards This plants capacity has recently been substantially
increased to meet the international demand for ACSR AASR core wire,

telegraph wires, spring steel wires and other types of wires.

Material Handling Division, Hyderabad

This division produces crushers, conveyors, coal cutters and other

specialised for plants, mine and allied industries.

Wire Machinery Division, Hyderabad

18
 It is well equipped Hyderabad plant. ALIND make the full range of wire
machinery in INDIA. ALINDS unmatched casting facilities are utilized by many
others such as HMT, HAL, BHEL and ISRO

Static Switch relay division, Trivandrum

Incorporating state of the art technology ALIND makes static relay. This
division was set up in 1981 in collaboration with the ALSTHOM ATLANTIOUE
of France. It produce range of tough, durable, accurate static relay, high impedance
current relay, over fluxing relay, auto releasing voltage regulating relay, over
current relay etc.

Consultant And Engineering Division Trivandrum

This division provides technical and managerial service, so that others

can share the fruit of ALINDs experience. It helps entrepreneurs to set up
viable unit in India and abroad in various industries like aluminium rod rolling,
conductor and cables foundry units, power transmission and distribution
system and others. Among the service it can offer survey and feasibility
studies, designing, marketing and man power selection.

Export Division Trivandrum

The first consignment of aluminium conductor cables to leave the Indian shore
was from ALIND. ALIND has now exported over Rs.250 million worth of cables and
conductor, wire processing machinery, steel wire and switchgear. These are going
more than 30 countries both developed and developing.

ALIND, Switchgear Division, Mannar, Kerala

The project is done in this switchgear division of ALIND in Mannar, Kerala;

let us giance through the company and product profile of ALIND switchgear division
Mannar Kerala.

19
 The switchgear Division of ALIND went in to operation in 1969 at mannar in
Kerala with technical and financial participation of the then Delle- alsthom, France,
the initial product. Range being outdoor MOCBs of 36KV & 72.5KV and oil filled
outdoor current transformers up to 72.5KV. Indoor metal clad switchgear panels
with MOCBs and 145 KV oil filled outdoor current transformers were added into
the product range in year 1974-75 and 1978-79 respectively.
Having obtained licence for manufacture of the new technology sulphur Hexa
Fluoride (SF6) gas circuit breakers for the first time in India, ALND entered into
technical collaboration with the same world leaders M/S Alsthom ATLANTIQUE,
France for manufacture of these breakers of 145 KV & 245 KV ranges, propagated this
technology in India through nationwide appraisal programmes for all utilities and
consultants and commenced manufacture towards early eighties.

Another breakthrough was made in 1984 by venturing in to vacuum technology by

going for another collaboration with m/s meidensha electric manufacturing company
ltd, japan for manufacture of 12Kv single pole vacuum interrupters and 25KV single
pole vacuum circuit breaker for Indian railway approved by RDSO after type testing &
fields trials. Also ALIND indigenously developed 25kv interrupted and vacuum
breaker with magnetic actuator mechanism which has completed field trials and
approved by RDSO under development source, thereby acquiring know-how and
exposure to all the latest relevant technologies for manufacture of medium high and
extra high voltage circuit, breakers.imbibed the basic technologies in manufacture of
circuit breakers, switchgears and current transformers, ALIND switchgear Division
believed in the philosophy of in-house R&D for updating its technology base up rating
its product range, widening its application engineering capabilities and innovation
skills to come out with a wide range of customer friendly equipments in the entire range
of transmission and distribution.

ALIND switchgear Division has a well built and modern R&D and
manufacturing set up for faster adaptation of its products to suit the varying needs of
its prestigious clients from small scale, large scale, mega scale industrial customers to
power corporation, Indian Railway, store electricity boards & most of the consultants,

20
in addition to overseas clients like NEPA, Nigeria; NEA, Nepal; MOD and MEW
Dubai, MUSCAT ect.

21
3.6 Organizational Structure of ALIND manner
CHAIRMAN

BOARD OF DIRECTOR

MAMANGING DIRECTOR

GENERAL MANAGER

FINANCE MANAGER

FINANCE EXECUTIVE

MARKETING MANAGER

MARKETING EXECUTIVE

SALES EXECUTIVE

HR MANAGER

PERSONNEL

PRODUCTION MANAGER

ASSISTANT MANAGER

WORKERS

Fig no: 1

22
 Chapter 4
Product Profile of
ALIND Switchgear Ltd

23
4.1. Circuit Breakers
A circuit breaker is an electrical device used in an electrical panel that monitors
and control the amount of amperes (amp) being sent through the electrical wiring.
Circuit breakers come in a variety of sizes. For instance, 10, 15 and 20 amp breakers
are used for most power and lighting needs in the typical home. Some appliances and
specially items (washers, dryers, freezers, whirlpool, etc.) will require a larger circuit
breaker to handle the electrical load required to run that appliance.

If a power surge occurs in the electrical wiring, the breaker will trip. This means
that a breaker that was in the on position will flip to the off position and shut down
the electrical power leading from that breaker. Essentially, a circuit breaker is a safety
device. When a circuit breaker is tripped, it may prevent a fire from starting on an
overloaded circuit; it can also prevent the destruction of the device that is drawing the
electricity.

4.2 Static Relays and C & R Panels

The Aluminium Industries Ltd (ALIND) established in 1946, entered into
technical collaboration with Dell Alsthom in 1977 for the manufacture of solid
protective relays at their Relays Division at Trivandrum. ALIND was the first company
in India to introduce a range of static relays in 1982. As the company in the forefront
to introduce static relays, ALIND has the largest experience in this technology. The
division has a most modern electronics plant producing the most advanced static and
microprocessor based relays and C & r panels.

Apart from the relays developed during collaboration period, ALIND indigenously
developed other static and microprocessor based relays and annunciates suitable for
railways and Electricity Boards with the unparalleled experience gained in the design,
manufacturing testing and application engineering.

C & R PANEL CONTROL PANEL WITH PROTECTIVE

RELAYS FOR TRACTION SUBTRACTION

24
 The C &r panel for use in the traction subtraction for control of
220/132/110/66KV and 27KV circuit breakers, 27KV interrupters and protection of 220
or 132 or 110 66/27 single phase transformers, substation equipment, 27KV over Head
equipment (OHE). Compact relay design accommodates entire protection, control and

annunciation in the panel.

AZM1114+:MICRO CONTROLLER BASED FEEDER

PROTECTION RELAY

AZM1114+ relay is a comprehensive feeder protection scheme designed for the

protection of conventional 27KV or 2x 27 KV (at feeding system) ac single phase 50HZ
traction over Head equipment (OHE). The relay is the modified version of the already
approved and validated feeder protection relay type AZ1114+ with built in auto reclose
relay and many other improved features. The relay meets the relevant IS/IEC standards.
The protection function includes.

Parallelogram characteristics distance protection (DP)

Wrong phase coupling protection ( WPC)
Potential transformer fuse failure protection(PTFF)
High set instantaneous over current protection (Inst. OCR)
Local Breakers back up protection (LBB)
Switch on to fault protection(SOTF)
Built in multi shot auto reclose feature
Auto reclose bypass on high current earth faults

AVD 11-C: VECTORIAL DELTA I RELAY

The vectorial Delta 1 relay type AVD 11- C has been specially designed for
application in the traction network to detect earth having resistance. It acts as a backup
to the distance protection relay and sensitive enough to discriminate fault current with

25
magnitude less than normal load currents. This is encouraged in traction network during
extended feed condition or during earth fault with very high resistance.

TVG 124: PANTO FLASHOVER PROTECTON RELAY

This relay based on logic circuit offers reliable protection of catenery wires
insulted overlaps of traction network. This relay safeguards the category wires at
insulted overlaps of traction network. The relay safeguards the catenery wires from
flashover when a moving panto happen to bridge the overlap with one side alive and
the other dead by tripping the breaker connected to the live OHE.

4.3 SWITCHGEAR
Switchgear is a combination of electrical disconnects switches, fuses or circuit
breakers used to control, protect and isolate electrical equipment. Switchgear is used
both to de-energize equipment to allow work to be done and to clear faults downstream.
This type of equipment is important because it is directly linked to the reliability of the
electrical supply.

4.4 Product Profile of ALIND, Switchgear Division, Mannar,

Kerala
Minimum oil Circuit Breakers

In the bulk oil breaker, the oil serves as both arcs extinguishing medium and man
insulation. The minimum oil breakers were developed to reduce the oil volume only to
amount needed for extinguishing of the arc about 10% of the bulk- oil amount. The
arc control for the minimum oil breakers is based on the same principle as the arc
control devices of the bulk oil breakers. To improve breaker performance, oil is injected
into the arc.

Vacuum circuit breakers

26
 ALIND are familiar in design manufacture, to supply & installation of
VACUUM CIRCUIT BREAKER PANLs for all current rating on HT side. The
classified voltage rating of the VCB panel are from 11KV to 36KV. We had even
supplied nos of VCB panel to many private & public sector. Our VCB are very
competitive & attractive on both side of price, structure & utilization.

27
 SF6 circuit breaker or gas circuit breakers
Sulphur hexafluoride (SF6) is an excelle nt gaseous dielectric for high voltage
power application. It has been used extens ively in high voltage circuit breaker and
other switchgear employed by the power i ndustry. Application for SF6 include gas
insulated transmission lines and gas insulated power distribution. The combined
electrical, physical, chemical and thermal properties offer many advantages when
used in power switchgears. Some of the outstanding properties of sf6 making it
desirable to use in power application arc;

High electrical strength

Unique arc- quenching ability
Excellent thermal stability
Good thermal conductivity

28
 CHAPTER 5

FUNCTIONAL DEPARTMENTS OF
ALIND SWITCHGEAR LTD

29
5.1 PERSONNEL DEPARTMENT
The personnel department is now called human resources (HR) department,
organizational unit or department having the functional responsibility of personnel
administration. This dept acts according to the manpower and recruit employees. This
department is responsible for hiring and training and placing employees and for setting
policies for personal management. Human resources is responsible for the development
of the companys HR policies, strategies and procedures on all aspects of people
management, including staff planning, recruitment and selection, pay and conditions of
service, management development, employment relations and works with the
conditions of service, management development, employment relations and works
companys equality and Diversity team to ensure equality of opportunity for all staff.
Human resources aims to provide a well intergrated, professional and cost- effective
service to the company.

The departments achievements over the past few years include major strategic
development such as senior leadership and management development programs,
support for occupational health, enhanced staff welfare and counselling service,
implementation of modernised pay and grading securities affecting inter printed by job
evaluation, and a staff survey that the overwhelming majority of staff felt that the
company was an excellent place to work.

5.1.1 Function of Personnel Department

Recruitment and training
General administration
Public relation
Maintain records regarding HR of the firm
Meeting the needs and wants of the employees
Collective bargaining
Grievance handling
Making good working atmosphere

30
 Security to the job wages and salary administration.

5.1.2 Departmental Management Team

The HR manager the overall strategy and work of the department and is
supported by senior managers we have specific responsibilities for division of the
department and specific aspects if work. The departmental management team meet
monthly and manages the work programs of the department, ensuring collaboration on
project which cut across team/division boundaries, and is responsible for developing
ideas and formulating plans for future HR/staffing strategies.

5.1.3 HR Administration
This area is led by the HR manager. The types of activity undertaken includes
organizing advertisements and recruitment processes, issuing contracts, advertising on
terms and conditions of employment, dealing with payroll related issues, sickness,
maternity and other leave of absence and processing resignation and retirement.

5.1.4 Information and Communication

The HR manager acts as system manager for the integrated HR/payroll system,
and is responsible for the production of reports and information, like staff details,
vacancies etc. this role is responsible for the production for maintain an overview of
strategic information, communication and data needs across the department and the
company, including the development of the staff intranet and the HR department web
site. The manager is also responsible for a number of HR information initiatives and
strategic company wide project and is supported, in these areas of work, by an HR
information and system advisor

5.1.5 Recruitment, Selection and Training

At the beginning of each financial year department originates manpower planning
if any and forward to personnel department. The personnel officer analysis this and
prepares list of such recruitment and submit to the chief division or approval, interview

31
will be conducted and rank list is prepared and is submitted to the appropriate authority
for approval. The need based recruitment is carried out after that.
Recruiting process

The company presently have employee strength of 200plus. The new vacancies are
filled by the selection of right candidates from the already selected trainees. The
company provides a platform for the individuals to expose themselves by getting in to
the training the company will recruit from the trainee. And make them permanent.

The process will be as follow.

Entering into the training period

Completion of the training period
Written and practical tests for the trainees
Interview by the HR panel
The best will be selected
TRAINING TYPE AND PROCESS

Presently 2 types of training programs are provided by the company

The training for the freshers

The training for the staffs

TRAINING FOR THE FRESHERS

The fresher does will get a chance to explore themselves after the completion of
their degree like ITI, diploma, B. Tech etc. the training period is for 3 years. They will
get the maximum exposure from the form and will get the full guidance from the
officials and the technicians.

32
 TRAINING FOR THE FRESHERS
The effective staff training is to identify the principal duties of the staff members
themselves, and to ensure that they are aware of their individual roles and
responsibilities. Beyond that a regular scheduled session should be put in place that
only addresses current responsibilities, but also acknowledging that all staff be
interested in developing their own skills and understanding the importance of their role
in the business.

33
5.1.6 Performance Appraisal System
This system is used as an evaluation system and as a feedback system. The
aim of evaluation system is to identify the performance gap. This means that it help
determined gap between the actual performa nce of the employee and that required or
desired by organization.

The aim of the feedback system is to form the employee about the quality of
this work or performance. This is inter active process by which the employee can also
speak about this problem to his superior.

5.1.7 Recruitment Policies

1. No person below the age of 18 and above the age 40 will be normally entitled to
be recruited as work men in the factory pr ovided that person below the age of 18 but
not under 15 years of age may be employed as office boys.

2. All work men is mentally examined by the companys medical officer at the time
of recruitment and periodically thereafter.

3. Immediately on recruitment the name of the work men and the grade or category
to which he belongs will be entered in the muster roll.

4. On recruitment every work men shall produce documentary proof his age and the
age will be entered in the companys record.

5. The performance of every probationer will be adjusted throughout performance

rating system.

5.1.8 Grievance Handling

It is agreed by both parties that solution of problem and settlement of dispute and
grievances can be best achi eved by joint consultation which also contribute to ward
better understanding and relation. In consideration of the above, the following
committees are consulted, and its composition, objectives, fu nction, tenure etc. will
be discussed and finalized between the parties of this agreement for their proper
functioning during the tenure of this agreement.

34
 a. Joint council
b. Shop floor council

It is agreed that grievances will be settled expeditiously at the lowest level and only
when this is not possible will this be handled and settled at higher levels.

For this purpose each union will nominate one representative from each section to
represent work mens grievances according to the grievance procedure and forwarded
a list of names of sectional representatives so nominated to the management and
intimate change as and when they take place.

Grievance handled in accordance with the grievance procedure laid down below:

a. The workman in person will take up his grievance with his

supervisor/foreman/technical assistant/section head as the case may be

b. If the decision of the immediate supervisor officer is not satisfactory or an answer

is not received by him within 24hrs. ( one working day), the workmen
accompanied by his section representative will present his grievance to the
department head concerned in writing signed by the workmen and the other section
representative acts on behalf.

c. If the department head concerned cannot settle the matter to the satisfaction of the
workman within 40hrs. (two working days), the department head concerned with
his mark will give the grievance note to the personnel officer/executive personnel.

d. The personnel officer/executive personnel, on receipt of the grievance note from

the department head concerned, will contact the workman and his sectional
representative within 48hrs (two working days) and will ascertain all relative facts
and endeavor to settle the grievance satisfactorily.

e. In case the personnel officer/executive personnel are not in a position to settle the
grievance satisfactorily, he will refer the same to the general manager. The general
manager will go through the case and issue instruction.

35
f. The personnel office/executive personnel will implement the instruction of the
general manger and will inform in writing the complaint or his sectional

36
 representative with a copy to the pers on concerned about th e final decision of
the management.
g. If the decision of the general manager is not considered satisfactory, or if not
replay is received from the management within 15days from the date of
submission of the grievance note, the wo rkmen or the union has a right to refer
the case to the state labour department ad provided by the existing legislation or
to take such other constitutional action as the workmen or union thinks fit.
Step (a): will be taken by the complaint and. Or union representative during
his/her scheduled period of rest.
Step (b): may be taken during working hour with the
permission of the supervisor/section head/foreman/ technical assistant.

The union will see only genuine grievan ces are brought by workers to the notice
of the management and that wastage of time is avoided in handling grievances
of an imaginary nature.

5.1.9 Employee Welfare

Safety and welfare measures are inevitable to any organization where
workers are involved. An organizations responsibility to its employees extends
beyond the payment of wages for their serv ices. The employees safety and welfare
on off the job within the organization is a vital concern of the employer. Providing a
safe and healthy environment is a prerequisite for any productive effort.

Labour Welfare has the following objectives:

1. To provide better life and health to the workers.

2. To make the workers happy and satisfied.
3. To relive workers from industrial fatigue and to improve intellectual,
cultural and material conditions of living of the workers.

37
The basic feature of labour measure are as follow:

1. Labour welfare includes various facilities, service and amenities provided to

workers for improving their health, efficiency, economic betterment and social
status.

2. Welfare measure are in addition to regular wages and other economic benefits
available to workers due to legal provisions and collective bargaining.

3. Labour welfare schemes are flexible and ever changing . New welfare measures
are added to the existing ones from time to time.

4. Welfare measure may be introduced, government, employees or by any social or

charitable agency .

The very logic behind providing welfare schemes is to create efficient, healthy, loyal
and satisfied labour force for the organization. The purpose of providing such facilities

is to make their work life better and also to rise their standard of living .

Health of Employees.
Cleanliness: the factory will be kept clean by daily sweeping or washing
the floors and work rooms and by using disinfectant where necessary.

Disposal of wastes and effluents: effective arrangements are made for

ventilation and temperature so as to provide comfort to the workers and
prevent injury to their health.

Dust and fume: effective measures are taken to prevent the inhalation
and accumulation of dust and fumes or other impurities at the work
place.

. Lighting: sufficient and suitable are arranged in the factory and work
rooms. Provision to make use of the sunlight in the production place is
effectively done by using glass titled roofing.

38
 Drinking water: effective arrangement for wholesome drinking water
for workers at convenient points.
Latrines and urinals: there are sufficient number of latrines and urinals
clean, well- ventilated, conveniently situated and built according to
prescribed standards separately for male and female workers

Safety of Employees
Fencing of machinery: all dangerous and moving parts of machinery are
securely fenced. Screws bolt and teeth are completely encased to prevent
danger.

Work on or near machinery in motion: lubrication or other adjusting

operation on moving machinery was done only by a specially trained adult
male worker.

Employment of young person on dangerous machines: no young person

was allowed to work on any dangerous machine (so prescribes by the state
government) unless he is sufficiently trained or is working under the
supervisor of knowledgeable person.

Device for cutting off power: suitable device for cutting of power in
emergencies are provided.

Employee Insurance
Employees are insured under the Employees state Insurance scheme (ESI). ESI in
a self-financing social security and health insurance scheme for Indian workers. For all
regular employees earning less than 15000 per month salary, the employer contributes
1.75 percentages, total share 6.5 percentages. This fund is managed by ESI Corporation,
which oversees the provision of medical and cash benefits to the employees, through
its large network of dispensaries and hospitals throughout India. The employees
registered under the scheme are entitled to medical treatment for themselves and their
departments, unemployment cash benefit in certain contingencies and maternity benefit
in case of women employees. In case of employment related disablement or death,
there is provision for a disablement benefit and a family pension, respectively.

39
40
 Recreation Club
Company provide a small r ecreation club so that the employees can relax,
play cards, caroms etc. these employees ca n refresh themselves from the tiresome
work. The club help them to recreate thei r mind and body to do the work with better
energy and efficiency.

The production department process and tracks all of the drawing for any
given project once they are released from the design department. This department is
responsible for taking the drawing and information and breaking them down in
managerial packets.

5.2 PRODUCTION DEPARTMENT

Production is the functional area responsib le for turning inputs into finished
outputs through a series of production processes. The production manager is
responsible for making sure that raw material are provided and made in to finished
good effectively. He or she must make sure that work is carried out smoothly, and
must \supervise procedure for making work more efficient and more enjoyable.

5.2.1 PRODUCTION PROCEDURE

The production and planning department will set standards and target for each
section of the production process. The quantity and quality of product coming
off a production line will be closely monitored.
The purchasing department will be responsible for providing the materials,
components and equipment required to keep the production process running
smoothly. A vital aspects of th is role is reinsuring stoc ks arrive on time and to
the right quality.

The stores department will be responsible for stocking all the necessary tools,
spares, raw materials and equipment required to service the manufacturing
processes.

41
STRUCTURE OF PERSONNEL DEPARTMENT

General Manager

Personnel Manager

H R Executives

Staffs

Fig no : 2

42
 PLANT LAYOUT

Inspection

Incoming
Section
Main store

Fabrication shop

Machine shop

Maintenance Auxiliary
shop

Component store

Planning
Assembly Unit
Works

manager

Packing
section
Testing

(QA)

LABS
Outgoing
Fig no : 2
43
5.2.2 Procurement of Inputs
After examining the drawing forwarded by the drawing department, the
planning department assess the quality and th e quality of the raw materials to meet
the requirement of the drawings. Then they will draft the requirement with all the
specification of each component, finished, se mi finished and raw materials for the
production. The planning department will purchase it or will give it as a sub
contract.

The materials will be unloaded as the incoming section of the plant where the
main store is located. Here all the goods are subjected to insp ection, where the goods
unloaded meet the ISO standa rds and the require ment of the proposed drawings. The
goods are inspected for its quality and quantity of the raw materials and semi
finished goods and the length, ize, weight , and the dimension of the finished goods.
The finished goods are tested for QA and is tested electricity in the labs for the
complete ensuring of that component. The testing will be done for the entire
components without missing a single sampling is done only for small goods like
fuses, otherwise all the component subjected QA and I needed lab test also.

After the inspection of good they are stored. The goods are stored in two separates
stores

Main stores
Component stores

All the raw materials and semi finish ed goods are stored in the main store
and all the finished goods are stored in the component store. The goods storing both
the stores will be properly D coded (a code starting with the alphabet D).
Documents are prepared for the incoming goods in both the stores about the quantity
and quality, remaining number of items etc.

5.2.3 Production Process

The production process goes through different Shops and stores

44
 Main store
Fabrication shop
Auxiliary shop
Component shop
Assembly shop
Testing shop

MAIN STORE

The production process starts by acquiring the particular goods from the main
store. Not all the individuals can go and have the components from the store. There are
persons who are in charge of accessing the goods from the store. They will give MR
(material request) for the required goods to the store. The store keeper will produce a
BIN CARD for each item in the MR. This BINCARD will give all the details of that
component like its remaining number, quality, dimension, date and time of last access
etc. After the release of required goods from the store the BIN CARD will be updated
to the present status of the component in the store.

FABRICATION SHOPPE

Fabrication as an individual term refers to building metal structure by cutting,

bending and assembling. Fabrication shop is located near to the main store. This is
because the goods unloaded for storing may be of larger size. These goods cannot be
stored s much, so these goods are chopped or shaped accordingly as per the requirement
in the drawing and is then stored in the main store. The function of fabrication store is
to fabricate the good so as to meet the specifications for example a large metal sheet is
made into pieces and is shaped into the specified component.

AUXILIARY SHOP

The function of auxiliary shop is to provide protection to the components. The

goods from fabrication shop and the other shop are forwarded to the auxiliary shop to

45
provide protection. Protection to the component are done through painting (to prevent
corrosion) galvanizing (process of applying a protective zinc coating), silvering (to
increase the conductivity)
MACHINE SHOP

A room, building or company where machine is done is called a machine shop.

A collection of material working processes utilizing power- driven machine tools,
such as saws, lathes, milling machine, and drill process are used with a sharp cutting
tool to physically remove material to achieve a desired geometry.

The three principal machining processes are classified as turning and milling
other operations failing into miscellaneous categories include shipping, planning
boring, broaching and sawing.

Turning operations are oprations that rotate the workplace as the primary method
of moving metal against the cutting tool. Lathes are the principal machine tool
used in turning.

Milling operations are operations in which the cutting tool rotates to bring
cutting edges to bear against the work piece. Milling machines are the principal
machine tool used in turning.

Drilling operations are operations in which holes are produce or refined by

bringing a rotating cutter with cutting edge at the lower extremity in to contact
with the work piece. Drilling operations are done primarily in drill presses but
sometimes on lathes or mills

Miscellaneous operations that strictly speaking may not be machining operation in that
they may not be sward producing operation but these operations are performed at a
typical machine tool. Burnishing is an example of miscellaneous operations.
Burnishing produces no swart but can be performed at a lathe, mill or drill press.

46
 An unfinished work piece requiring machining will need to have some material
cut away to create a finished product. A finished product would be a work piece that
meets the specification set out for the work piece by engineering drawing or blueprints.

COMPONENT STORE

The component store is a place where all the finished goods and components are
stored. Finished goods purchased are also stored here. The components will be

47
issued only to the assigned persons by the submission of MR (material request). Here
also the details of the components will get updated like the main store.

ASSEMBLY UNIT
After all the above procedure, we will get all the finished components as per
the requirements and the specification of the proposed drawing. All the components
are assembled accordingly to form the finished final product. The assembling unit
will also be provided will the drawing and th ey will fit all components as show in the
drawing.

TESTING (QA) UNIT

The testing unit including the labs will test the assembled units for its actual
functionality. Two tests are usually performed.

Routine test
Type test

PACKING AND DESPATCHING

The finished tested goods are then moved to the packing section for the
despatch. The goods are packed in a wooden case made by the company itself. The
carpenter makes these boxes with one end open. The good are safety kept inside the
box with the help of electronically movable belt and conveyors. Th e open end is then
closed with the striped woods. The despatch address is written on these striped
woods in front of the boxes. These boxes ar e loaded into the trucks by using the
electronically movable belt and conveyors and is despatched.

48
49
MACHINE SHOP CHART

Chief of Machine Shop

Head of Machine Shop

Engineers

Supervisors

Workmen

Fig no : 5

50
 5.3 MARKETING AND SALES DEPARTMENT

This department deals with the activities pertaining to tendering, procurement of

orders techno- commercial compliance, and execution of orders and collection of
payment of all the products manufactured by the division.

The chief of marketing and sales may reproduce and circulates the abstract of
the procedures as required in the department. The circulation and its control will be his
responsibility, he will maintain a distribution charts for this.

5.3.1 Function and Responsibility

Formulating strategy depending and appropriate on marketing/ customer

need.

Interact with customers and appropriate them about quality of the product.
Preparation of annual marketing and sales monitoring
Co-ordination tender review meeting on receipt of order.
Co-ordinates with agents and regional officers in connection with marketing
and sales activities.

Approval of product idea with ED, chief of DS and chief of production.

Impart training and groom marketing, sales personnel to take up
responsibilities assigned to them.

RESPONSIBILITIES OF THE HEAD OF MARKETING

Depending on the seriousness of enquires, decide priority on responding to them,

follow up etc.

Liaise with DS department for tender clarification, preparation of drawing, cost

estimation, bill of material.

Submit quotation in consultation with DS and planning department.

51
 Organize tender committee (review of customer requirements) meeting with ED,
department heads of DS, purchase, planning, QA and production to finalize the
specification.

Attend techno- commercial discussion with consultants/ client and negotiate the
prices for finalizing the order.
Give clarification/ guidelines to regional officers, agents in the field of follow up.

Scan environment for new product, opportunities and advise DS department for
development to meet customer need.

Keep data on price of the product and generate data bank for price decision and
market analysis.

RESPONSIBILITY OF THE HEAD SALES

Submit tender, attend techno- commercial discussion and procedure order from
industrial customers and for spares in consultation with marketing wing.

Liaise with D&D, planning and QA departments for smooth execution of all
orders.

Correspond with customers to get clarification

Obtain vendor registration with customer and other government/ public and
private sector and statutory bodies.

Maintain contact and keep up the rapport with customers.

Originate request for bank guarantees, security deposit, performance guarantee to
comply with purchase orders.

Submit quotation for spares and procure order.

Create data bank and prepare reports for marketing and sales department.

5.3.2 Procurement of Order

52
 The marketing and sales department collect information to tender enquiries from
any of the following And arrange for procuring tender specification.

Leading news paper

Tender bulletins
Agents and regional offices.

After obtaining tender specification, marketing wing will register it in the tender
enquiring register (MK/REG/01). All tender details are entered in the register and
serially numbered.
On the receipt of tender enquires , chief of marketing distributes the enquires to
the concerned person according to the work load on each engineer and he/she will
thoroughly study the specification.

Marketing wing in consultation with DS department scrutinize the tender

specification and in case any further clarification is required marketing wing will
contact or write to the party and collect all the required details before preparing the offer
to the party.

Marketing wing further prepares the legend for wiring assembly against the
tender. The price detAils of the brought out items are collected from purchase
department and costing details from accounts department and prepare the tender.

Marketing wing organise the tender committee ( review of customer requirement)

with ED and department head of DS planning, purchase, QA and production to
finalise the specification, delivery etc. To be quoted against the tenders. Minute of the
tender committee ( review of customer requirement) is circulated among all
participants. The decision to organise the meeting will be the discretion of the chief
of marketing and sales department and record of the same (MK/MTC) is maintained.

The price decision will be taken in consultation with ED.

53
5.3.3 Execution of Contract

On the receipt of LOL (letter of intent), the sales wing compares the order
with the offer technically and commercially. If any deviation is observed with the
office it is resolved with the customer prior to taking up the item for manufacture. The
order is then registered in an order register (MK/REG/03). Against each order
contract number is given. The contract number is given product wise a given below.

o This is the main and important reference with respect to the particular order and
all correspondence is referred with this contract number thereafter. o After
registering the order sales wing acknowledge the receipt of the order to
customer quoting the contract number. A new file will be opened (MK/CON)
giving this contract number for identification.
o Sales wing further, takes photocopies of the purchase order and circulates it to
planning, DS, accounts, QA and purchase department. Along with the purchase
order, copy of all relevant information regarding that particular contract will be
furnished to DS department to take all technical parameters while issuing
contractual drawing to the customer and manufacturing specification to
production and planning by DS department. The records are kept in the
respective file with sales wing. Sales wing request the DS department to issue
the contractual drawing to the customer.

o Sales wing subsequently organize a contract review meeting as per the

procedure (MK/P/CRP)

o In case any amendment are required sales wing does all correspondences with
customer and gets the order technically and commercially clear in all respect.

o Sales wing given the inspection call and arrange inspection directly or through
regional office/agents. o After inspection the dispatch clearance, road permits,
test report approved etc. Will be obtained from customer.

o Sales wing further give details to purchase, planning, stores and QA, all the
consignee particular enabling smooth dispatch of equipment.

54
 o After dispatch, sales wing collect the chelans, from the purchase department,
test reports from QA department, contractual drawing from D &D and then
prepared the dispatch document which will be send to the paying officers,
respective consignees, regional officers or agent for collecting payment. o Sales
wing prepares the invoice and the serially numbered and entered in the invoice
register (MK/REG/04). Sales wing subsequently does follow up work till the
payment is received.

5.3.4 Disposal of Scraps

Stores department declares the quantities of scraps and the intimation in the
intimation in the form of a note is given to sales department. On receipt of this
intimation, sales department invite quotation from various parties. The orders are
placed on the highest bidder. The date of lifting of material will be intimated to stores.
Executive (P&M) nominates a special officer to verify/measure/check the weight and
quantity of scrap being sold and on receipt of the note duly signed by special offer,
sales department prepares the gate pass and thus the scrap are disposed off in co-
ordination with stores.

This department deals with procurement of raw materials, components operating

supplies tools, spares etc. Also handles collection of inward materials, despatch of
outgoing goods and civil construction.

5.4.1 Functions and responsibilities

The purchase and construction department is headed by the chief of purchase and
construction department and his function are given below.

Procure raw materials/ component/capital goods conforming to specifications.

Ensure that all materials and components from suppliers accompanied by
necessary documents including proper test certificates which ever applicable.

55
 Carryout assessment and maintain approved vendors list. This list will be
updated once in year.

Maintain proper records for material accounting and financial accounting as

applicable to purchased items.

Arrange collection of incoming goods and dispatch of outgoing goods.

Dispatch of outgoing goods will be arranged in co-ordination with planning
and stores department and marketing and sales department.

Civil construction and civil maintenance.

5.4.2 Origination of Purchase Order

Purchase requisition raised by indenting departments and duty approved by the

authorized personnel are received in department head, and handed over to the
concerned dealing officer. The purchase requisition will contain full
specification of the items.

Department head of the indenting department can approve all purchase

requisitions, except for capital equipments. The purchase requisition will be
approved by the chief of division

56
 STRUCTURE OF MARKETING DEPARTMENT

CHIEF OF MARKETING

DEPARTMENT

SENIOR EXECUTIVES SENIOR EXECUTIVES

(MARKETING)

ASSISTANT EXECUTIVE ASSISTANT EXECUTIVES

Fig no: 6

57
 5.4 PURCHASE AND CONSTRUCTION DEPARTMENT

A purchase requisition will contain only items of same category.

On receipt of purchase requisition enquiry are sent to probable suppliers.
Purchase order is normally be placed on the lowest priced supplier, as the officer
are normally received from quality conscious and reliable suppliers.

Delegating of the purchase orders is prepared by the dealing officer. The draft
purchase order along with comparative statement and requisition is scrutinized
by a purchase committee. Purchase committee members are

1. Manager
2. Chairman
3. Chief purchase and construction convener
4. Chief production, maintenance & engineering service.
5. Chief of design and development.
6. Chief of planning.

5.4.3 Ensuring Quality of Purchase Products

While issuing the purchase order, care is taken to see that all relevant details
and specifications as per the requirement are furnished to the vendors. Vendors are
properly instructed/educated on the quality equipment. Since parties are evaluated
earlier, the possibility of supplying substandard items is eliminated. Once the items are
supplied they are inspected by the QA department based on the inspections advice
originated by the purchase department for all relevant factors by passing the items. If
there is any deviation from the requirement, QA department clearly mentions the
details in the inspection report and forwards to the purchase department. Purchase
department in turn informs the result to the vendors purchase departments make study
and take appropriate action to improve the quality in consultation with QA and D&D
departments.

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59
5.4.4 New Vendor Development

Address of new parties will be obtained from various sources and based on
the assessment made by the personnel vis it of their work and verification of their
supplies to the parties, a sample is obtai ned from them for inspection by one QA
department. If the samples are acceptable or satisfactory to suit the requirement, a
trial order will be placed. The material recei ved against this order will be inspected
and if approved , the suppliers will be rated on the inspection reports and is included
in the APPROVED VENDOR LIST. While rating the party other factor such as their
capability to supply the specified quantity as per requirement in time at a competitive
price will also be considered.

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 STRUCTURE OF PURCHASE AND CONSTRUCTION DEPARTMENT

CHIEF OF DEPARTMENT

HEAD OF THE SENIOR SUPERINTEND

DEPARTMENT SUPERINTED

ASSISTANT
SECTION HEAD ENGINEER
SUPERINTEND

OFFICE STAFF

Fig no: 7

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5.5 FINANCE AND ACCOUNTING DEPARTMENT

5.5.1 Accounting Policies

Basis Of Accounting
The financial statements are prepared under historical cost convention, on the
accounting principles of a going concern and accordance with the applicable
accounting standards.

All expenses and income to the external ascertainable with reasonable certainty
are accounted for an accrual basis.

Interest on overdue debts and other claims to the extend considered recoverable
are accounted in the year of claims. However claims whole recovery cannot be
ascertained with reasonable certainty are accounted on acceptance/ receipt
basis.

The presentation of financial statement in conformity with generally accepted

accounting principles (GAAP) require management to make estimate and
assumption that effect the reported amounts of assets and liabilities, and the
discloses of contingent liabilities on the date of the financial statements. Actual
results could differ from those estimates. Any revision to accounting estimates
is recognized prospectively in the current and future periods.

Fixed Assets
Fixed assets are stated at cost less depreciation and direct cost related to
acquisition of fixed assets are capitalized until the assets are ready to put use.
This cause includes freight, installation cost, duties and taxes and other
allocated expenses.

The company assesses at each balance sheet date whether there is indication
than the any assets may be impaired. If any such indication exists, the carrying
value of such assets is reduced to its recoverable amount and the amount and
the amount of such impairment loss is charged to profit and loss account.

62
However, if in the balance sheet date there is any indication that a previously
assessed impairment loss no longer exists, the loss is not recovered.

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 Investment

Long term investments are followed. No adjustment is made in carrying cost

for temporary decline in the value of investment and where these are considered
strategic in nature by the management.

Depreciation/Amortisation
Lease hold land is a amortized over the period of lease.
In case of building and plant machinery depreciation is calculated on straight
line method and in case of other assets on written down value method at the
rates and in the manner as prescribed in schedule 14 to the companies Act
1956.
Each individual asset costing less than rs 500 is fully written off in the year of
acquisition.

In the case of closed units, depreciation is not provided.

Value of Inventories
Inventories are valued at lower cost and estimated net releasable value
except stocks of scrap/rejects, which are taken at nil va lue and recognized
on sale, obsolete, defective and unserviceable stocks are provided for.
Cost in resort of work in-progre ss and finished good represented direct
cost and an appropriate portion of fact ory overheads which are incurred in
bringing them to their present location and condition.
REVENUE RECOGNITION

Sales are stated exclusive of sa les tax, excise duties, se rvice taxes and net of
rebates and discount. Revenue is recognised when the property and all the
significant risks and rewards of ownership are transferred to the buyer or no
significant risks and rewards of ownership are transferred to the buyer or no
significant uncertainty exists regarding the amount of considerat ion that is derived
from the sale of good.

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 Retirement Benefits
Transaction and family pensions as a percentage of salary and wages for elgible
employees contributed to the provident fund trust maintained at the various units
of the company except relays division. Trivandrum where contributed are made
directly to the regional provident fund commissioner.

Gratuity liability on accrual basis at all the closed divisions of the company.
Leave encashment is paid/provided for as per the rules of the company and
accounted for on cash basis.

Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange prevailing
on the date of transactions.

All exchange difference are deal with in the profit and loss account except those
relating to acquisition of fixed assets, which are adjusted to the cost of assets.

Foreign currency assets and liabilities other than those for financing fixed assets
and outstanding as at the close of the year, and resulting gains/losses where they
are covered by forward foreign exchange contracts in which case where they
are covered by forward foreign exchange contract in which case these are
translated at the contracted rate of exchange and the resulting gains/losses are
recognized in the profit and loss account over the life of the contract.

Accounting for Taxes on Income

Provision for income tax is made on the basis of estimation, considering
various provisions of the income tax Act 1961.

Deferred tax for timing difference between the book and the tax profit
for the year is accounted for using the tax rate and laws that have been
substantively enacted as of the balance sheet date. Differed tax assets arising
from timing difference are recognized and carried forward only if there is
reasonable/virtual certainty they will be realised in future and reviewed for the
appropriateness of their respective carrying value at each balance sheet date.

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66
 Research and Development Expenditure
Expenditure on research and developm ent is charged to profit and loss
account.

Provision, Contingent Liabilities And Contingent Assets

A provision is made based on relia ble estimate when it is probable
that an out flow of resources embodying be nefit will be required to settle an
obligation. Contingent liabilities which are material and whose future
outcome cannot be ascertained with reasonable certainty are treated as
contingent and to the extend not provided for, are disclosed in the notes to
the accounts. Contingent assets are not recognised or disclosed in the
financial statement.

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WORKING CAPITAL CYCLE OF ALIND

Finished
goods
Sales

Production Profit

Raw
materials

Figure no: 8

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STRUCTURE OF FINANCE DEPARTMENT

FINANCE MANAGE

CHIEF ACCOUNTS

CHIEF OF CASHIER

JUNIOR ACCOUNTANT

CLEAKS

Fig no: 9

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 CHAPTER 6

PERFORMANCE ANALYSIS OF ALIND

SWITCHGEAR LTD

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6.1 SWOT ANALYSIS

STRENGTH

Good and adequate manpower and young staff/workmen with good average
period of employment, low labour turnover.

Quality machines-imported/indigenous.
Logistically located land with adequate space for expansion and operation.
Infrastructure availability-building, power, water.
Technical knowhow of experienced staff.
Pollution free process.
Government support/job security.

WEAKNESSES

Shortage of working capital

Low market share due to lack of market penetration techniques.
Lack of optimum capacity utilization.
Lack of career development as far as junior staff are concerned.
Certain machines and technology used are either obsolete or outdated.
Lack of research and development.
Lack of modern marketing techniques.
Lack of modern sophisticated cost effective manufacturing methods.

OPPORTUNITIES

The companys new product like transformer opens a big future and a big market
in India and also to the KSEB.

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 The aim of the company is to meet global standards. This provides the opportunity
to create world-class products.

Indian railway is a big customer of ALUMINIUM INDUSTRIES LTD

(ALIND), therefore the expansion of IR is a great opportunity.

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 After failing to meet the power generation targets of 11 th
five year plan, the
central government id depending upon th e private sector to augment power
th
generation by 50000MW in the first two years of the 12 five year plan.

THREATS
High dependence on KSEB and Indian railway for order.
Highly organized professional groups in marketing and their cartels.
Changing in technology.
Cost of raw materials.

6.2 PORTERS FIVE FORCE ANALYSIS

Porters five force analysis is a framework for the industry analysis and business
strategy development developed by the Mich ael E. Porter of Ha rvard business school
in 1979. It draws upon industrial organizatio n economies to drive five forces that
determine competitive intensity and therefore attractiveness of a market.
Attractiveness in this context refers to the overall industry profitability. An
unattractive industry is on in which the co mbination of these five forces acts to
drive down overall profitability. A very unattractive industry would be one
approaching pure competition in which available profits for all firms is given
down to zero.

Porters five force include

Three force from horizontal competiti on: threat of subs titute products, the
threat o established rivals and the threat of new entrants.
Two forces from vertical competition: the bargaining power of supplies and
the bargaining power of customer.

The five forces analysis is just one part of the complete porter strategic models. The
other elements are the value chain and the generic strategies.

The five forces are;

The threat of the entry of new competitors

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 The threat of competitive rivalry
The threat of substitute products or services
The bargaining power of buyers
The bargaining power of supplier

PORTERS FIVE FORCE MODEL OF SWITCHGEAR

INDUSTRY
1. THREAT OF NEW ENTRANTS

Threat of new entrants is major aspect of the five forces. In the switchgear
industry, this is generally a very low threat. Factors that are restraint include shortage
of power supply as well as the increase in interest rate caused by inflation. Another
factor is uncertainty and low pace of reforms. Socio-political issues and inadequate
infrastructural setup delays foreign investment on switchgear industries,
macroeconomic challenges constrain private and public finding. Switchgear
industry is also affected by the spurious market.

2. RIVALRY OR COMPETITION AMONG EXISTING FIRM

Competition in the market can be termed as moderate. If a firm would decide

to leave an industry it would incur huge losses, so most of the time it either bankrupts
or stays in automotive industry for the lifetime. At present ALIND switchgear ltd
is only price competition between the existing firms. Major market participants are
focusing on maintaining their current market shares. Participants are more
concentrating on importing the quality of product through introducing new
technology rather than on pressure on its vital technological advances protect
company from competition.

3. BUYERS BARGAINING POWER

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 Buyers in the market can be termed as moderate to high. Buyers are price
sensitive and have various option because of competition. Major (project one time)
and repeated buyers tend to have a high negotiating power. However sometimes
buyers cannot make independent decision. They are bound to buy

75
certain companys switchgear, which is recommended and insisted by the
consultant else recommende d by the ultimate user sp ecification. Certain project
need highly customized switchgear industry is highly price sensitive. In
switchgear industry customers have the ability to put their firm under pressure.

4. THREAT OF SUBSTITUTE PRODUCTS

The threat of substitute is low. A substitute product doesnt make much harm
on switchgear industry. Overall quality, reli ability and safety of switchgear are
determined as a mandatory strategy for success, because switchgear products are
mainly required for general protection as well as switching. So it is not easy for
the substitute products to pr ove its capacity in this se gment. Switching cost of
buyer for a product is so high and also it may depreciate quality.

5. SUPPLIERS BARGAINING POWER

Bargaining power of suppliers is low. In switchgear industry doesnt exert
much pressure on the firm because substitute inputs available for this industry is
very low and intensity of competition among suppliers is also high. All these
factors make the bargaining power of the suppliers low in switchgear industry.

76
 Chapter 7
Findings, Conclusion and Suggestions

77
7.1 FINDINGS
The findings of the study are
At present the company is in loss due to lack of proper management.
No employee participation in decisions.
When compared to earlier periods, the level of production has not improved.
The major customer for the company is Indian railway.
Increased employee absenteeism.
Absence of time management.
Lack of modern technology.
A good MIS network.
Even if they have a good MIS, paper work is engaged for most of the
activities.
Traditional marketing technique.
A systematic production unit.
Delay in decision.
This sector has good scope and growth.
No exploration of new market.
No new product developments.

Less communication with the brands of the company.

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7.2 CONCLUSION
The company is manufacturing a very high quality of ci rcuit breaker and
transformers compared to the industry standards and are having very good
reputation. The company has grown in a ve ry healthy pace. This is due to the
good employee morale than has been deve loped in the company right from the
beginning and also because of the excellent managerial capabilities of the middle
level management. The relationship maintained in the work force is excellent and
the company has got a good plant environment with the good technology and
machinery.

From the organization study conducted in ALIND, the functioning and the
activities of the company is studied. It is found that the company is bound to
follow rules and regulation to avoid fa vouritism and corruption. The chance of
corruption is less in this company. The t op management is very strict about the
same. There is low stress and high job security.

There is above average employee retention in the company. Which ensure the
availability of experienced hand. It is bound to take time to follow the
decentralized management system. Resistan ce to change and low adaptability in
different situations is a drawback. Not much important is given to long term goals.

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7.3 SUGGESTION
Ensure employers participation in decision making.
Job rotation will improve the productivity of work force.
Encouragement and support to the employers to achieve the target.
Effective measures to control absenteeism.
Encourage synergy through teamwork.
Employer -employee relationship.
Transparency & better communication.
Fully capacity utilization & diversification.
Efficient and effective marketing.
Market survey by engaging professional agencies.
Regular scanning of news papers/bulletin/internet.
Direct enquiry with customers.
Vendor registration-private/state/bulletins/internet.
Adhere to production norms.
Diversity based on market needs to achieve profitability/forecasting.
Demands and technology advancement and modernization.

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BIBLIOGRAPHY
Text Books

Kothari, C.R (2004) research methodology, new age international private

limited publishers, New Delhi.
Kotler phillip, (2004), marketing manage ment, prentice-hall of India private
limited sarma, A.M (2007), industrial relations, Mumbai.
T.N. Chanbra, (2005), Human Resource Management, Dhanpat & co private
Ltd, Delhi.
Annual report, ALIND switchgear Division Mannar.

Web sites

http://www.indiacore.com
www.zaubacorp.com/company/ ALIND SWITCHGEAR- LIMITED
www.wikipedia .com

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